Core competencies are organizational strengths or abilities, developed over a long period of time, that customers find valuable and competitors find difficult or even impossible to copy. Honda, for example, is recog¬nized for having core competencies in the engineering and manufacture of small gas- powered engines. Those core competencies have helped Honda conquer numerous mar¬kets, including the markets for motorcycles, cars, lawnmowers, jet skis, and home generators. Core competencies can take many forms and even shift over time. IBM used to be known as a computer hardware company. Today IBM’s core competency is arguably its ability to provide customers with integrated information solutions and the consulting services needed to make them work. As a recent magazine article noted, “good IT staffers are hard to find, but IBM Global Services alone has 150,000. That makes IBM the world’s largest IT services provider.” You can imagine how hard it would be for other firms to try to duplicate IBM’s advantage. In some cases, the ability of a firm to manage its supply chain partners may in itself is considered a core competency. The ability of a firm to manage its supply chain partners may in itself is considered a core competency. This is certainly the ease for Dell Computer Corporation, which practices what Michael Dell calls “virtual integration." While not all organizations are dependent on their supply chain partners as Dell is, current industry trends suggest that more and more organizations are focusing on developing only a few core competencies and outsourcing everything else. This puts a premium on an organization’s ability to select good partners and coordinates the flow of information and material between partners. It creates risks, especially if the organization’s selected core competencies fall out of favor in the future.

Functional strategies translate a business strategy into specific actions for the...

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...CORECOMPETENCIES OF BUSINESS STRATEGYCore competence an important business capability that gives it a competitive advantage, core product made from a business’s corecompetencies, but not for final consumer or ‘end’ user. To be of commercial and profitable benefit to a business, a core competence should:
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CoreCompetenciesCorecompetencies are the essential capabilities that create a firm’s sustainable competitive advantage. Based on experience, knowledge, and know-how, they are built up over time and cannot be easily imitated. For this reason, products and technologies are seldom corecompetencies. The advantage they provide is short-lived, and other companies can readily purchase, emulate, or improve...

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CoreCompetencies
Stevens-Henager College
By Lindsey Merrill
November 26, 2013
Student: Lindsey Merrill
Professor: Robert Robertson
Abstract
Corecompetencies provide a framework for the company to build additional products, move forward into other markets, gain a larger market share, and explore new ideas. Dell Inc. has over 5000 patents today that started from the computer...

... 2. What are core competences?
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FunctionalStrategies
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...Core Competence of the Corporation
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Corecompetencies, as described later in the article, “are the collective learning the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies.” This article started by discussion how corporations usually dealt with global competition in the 1980’s. This swiftly changed in the 90’s when companies had to become better able to exploit their...